The scheme available to exporters in earlier regime that exemption from payment of customs levy for the goods imported solely for the purpose of fulfilling export obligations could not be denied due to coming of new regime

The scheme available to exporters in earlier regime that exemption from payment of customs levy for the goods imported solely for the purpose of fulfilling export obligations could not be denied due to coming of new regime

Goods & Services Tax
PRIYANKA INDIA (P.) LTD. & ORS. vs. UNION OF INDIA & ORS.-(GST HC Cases)

Assessee imported gold bars from Abu Dabi and applied for clearance, in addition to conversion of Bills of Entry for Home Consumption to Bills of Entry for Warehousing—Revenue on provisional assessment, rejected application of assessee—Duty demand was raised and goods were released provisionally on payment of customs duty—Held, following decision of Jindal Dyechem Industries (P) Ltd vs. UOI, prevailing exemptions under the custom notificationscould not be denied merely on the premise of the introduction of a new levy under the Goods and Services Tax with effect from 01.07.2017—In 22 GST Council meeting, it was decided to nd extend the Advance Authorization to sourcing inputs from abroad as well as domestic suppliers—Holders of AA would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier—Assessee not required to pay IGST in respect of the imports of gold bars in terms of AA issued to it—Appeal Dismissed.

Counsel for the petitioner states that orders have not been passed by the customs authorities in terms of order dated 27th November, 2017. It is stated that the authorities are confused for it has been suggested that the petitioner should furnish bank guarantee in addition to undertaking- cum-bond. We have permitted release of the goods on the petitioner furnishing an undertaking-cum-bond to the respondent authority. We have not asked the petitioner to furnish bank guarantees. In these circumstances, the authority should not insist on the petitioner furnishing bank guarantee.


Compliance of the order dated 27th November, 2017 would be made within five working days of the receipt of the order by the respondent authorities.


However, the respondents would be entitled to examine and verify the goods imported and whether the import is in accordance with law and as per the advance authorisations.


Counter affidavit would be filed within six weeks. Rejoinder, if any, within four weeks after service of the counter affidavit. Re-list on 5th March, 2018.


We would also ask the Board to examine the issue raised and, if deemed appropriate, they shall issue necessary directions. Dasti.

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